Mortgage offer seems low?

trapped_in_high_interest

Hi everyone,

We are currently trying to re-mortgage as our mortgage payments are £870 per month plus a secured loan of £252. We are currently paying about 8.9% on mortgage and 13% on loan.

We also have debts totalling around 17,000 pounds. We contacted Money supermarket and were contacted by CWS. An advisor has been to see us and has come up with the following figures

£140,000 mortgage over 25 years - 2 year fixed rate at 6.04% for £918 with 1 1/2 % arrangement fee

or 3 year fixed rate at 6.4% at £920 with arrangement fee of £799.

I am a bit disappointed as I felt the monthly repayments would decrease considerably more than this,

Any ideas/advice out there about this?

Cheers guys and girls

luckyfool

Trapped in High Interest,

I am assuming there is some history of adverse credit or other specialist requirements based on the rates you have been quoted, and also the rates you are paying currently on your debt.

Remember you are increasing your mortgage size to pay off your secured loan, as you are currently paying £1122 a month on your secured loan and mortgage together, £920 odd is still saving you £202 a month, which sounds pretty good as long as you are taking the mortgage over the same term and on repayment.

Without knowing your specific circumstances it is impossible to know whether the rates you have been quoted are the best.